Yes, the movement when the camera turns on is due to the power on self test.  You will not be able to control the camera until that test completes.

The 1 and 2 buttons are used to set 2 preset positions, then once the positions are set, you hit Auto - to automatically pan between the 2 presets.

You always want to be careful with the internals of the camera, because it is very easy to damage the bracket or motors when the dome is removed.

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